Study On The Cost Management And Control System Based On The Activity-based Costing

With the development of our country’s market economy,manufacturing enterprises are ushering in new opportunities,but they are also facing increasingly fierce industry competition.In this condition,outdated management concepts and extensive management models have been unable to meet the development requirements of modern enterprises.The manufacturing enterprises,like military product processing enterprises,etc.,have gradually realized the importance of cost control.However,there is an urgent problem to be solved for the management of manufacturing enterprises,that is how to obtain cost advantages by improving the resource utilization rate.For the enterprises with diverse product varieties,large batches,a high degree of refinement,and a large proportion of indirect costs,a cost control system based on activity-based costing can more accurately meet the internal and external cost information needs of the enterprises,stimulate the enterprises’strategic planning and decision-making process,and dynamically optimize the production process of enterprises.This paper is based on the related theories of activity-based costing and cost control.By analyzing the basic situation of BQ company and the current situation of its cost control,the paper points out the existing problems in cost control of BQ company.To solve the problems,the paper introduces the activity-based costing method as a new cost accounting method to improve the existing one.Combining the characteristics of production and operation of military product processing enterprises,and centering on the three principles of cost-effectiveness,unity of rights and responsibilities,and understandability,the paper constructs a cost control system based on activity-based costing and a continuous improvement system for BQ Company.To prove the scientificity and effectiveness of the cost control system,this paper selects some orders of BQ company as an example to test,and the application results show that the system has good applicability,and activity-based costing can provide accurate product cost information for the enterprise.During the cost analysis and decision-making process of the company,the activity cost information is better used,which improves effectively the enterprise’s ability to integrate and utilize resources and operational efficiency.Finally,the paper proposes relevant measures to promote the effective implementation of BQ company’s cost control system,such as enhancing the cost control awareness of all employees of BQ company,improving the performance appraisal system,and improving the quality of relevant personnel.